Banking Courts III, and IV Karachi are lying vacant since long and no judge has been appointed so far. There are 5 banking courts functioning in Karachi where banks, development financial institutions, leasing companies etc are to file their suits for recovery of stuck-up, in terms of special recovery law such as financial institution (Recovery of Finances) Ordinance-2001 including Amended Act-2016. As per practice the linked judges have been deputed to hear the cases which are pending for adjudication but the present hon’ble judges of remaining two courts are busy in their courts and selected cases are being heard otherwise, adjourned with a long date hence various suits and executions are pending. The special recovery laws was promulgated for smooth and speedy trial and deal with recovery process of the bank loans and loan defaults. The smooth recovery process would result in growth of healthy credit culture financial section move ahead besides reduce risks of default. 

In terms of clause 5 of sub section 4 of financial institution (Recovery of Finances) ordinance-(Amendment) Act-2016, a judge of banking court shall be appointed by the Federal Government after consultation with the Chief Justice of the Hon’ble High Court of the province in which the banking court is established and no person shall be qualified for appointment as the Judge of Banking Court unless he is or has been qualified to be District Judge. Similarly, in accordance with sub section 10 of section 5 of Amendment Act-2016, A judge of banking court shall submit to the Chief Justice of the High Court of the Province in which the Banking court is established, Reports on a quarterly basis regarding the number of cases filed, heard and disposed of by the banking court during each relevant quarterly period. 

It is suggested that copy of quarterly report should be sent to Governor State Bank of Pakistan as a regulatory authority of banks and other financial institution in Pakistan to have close monitoring and also to SECP. It is also proposed that a website may be designed in Banking Courts division, wise in each province where cause list may be shown for all cases that are fixed on next day/date as such websites are functioning in high courts where litigants could see their cases and easily excess to everybody through electronic system. Appreciation certificate and awards should be announced for banking court Judges who decided their cases in time limit as specified in Recovery Ordinance-2001 for disposal of cases in true legal spirit especially section 13 of ordinance indicated that a suit where leave is granted shall be disposed of within 90 days. It is further provided that court shall not allow adjournment for more than seven days. 


Karachi, March 10